Orora Limited · ASX:ORA
Orora — Merger or Acquisition (November 2018)
10 slides from Orora's merger presentation, Nov 29, 2018
Slide 1: Orora acquires Pollock
Orora acquires Pollock 29 November 2018
Slide 2: Transaction summary
Transaction summary Orora acquires Pollock – a market leading Texas based packaging and facility supplies business for a total consideration of US$80.5m (A$110m) Consideration • US$75.5m (A$103m) paid upfront • Holdback of US$5m (A$7m) payable in instalments at 6, 9 & 12 month milestones EBITDA Mult
Slide 3: Pollock overview
Pollock overview Pollock is a leading provider of industrial, retail and facility supplies and is a vertically integrated corrugated box manufacturer • One source approach to the market focused on the facility supplies, packaging & packaging equipment, food service supplies and retail supplies segme
Slide 4: In-house packaging design and manufacturing / Packaging Solutions portfolio
In‐house packaging design and manufacturing / Packaging Solutions portfolio Manufacturing capabilities Packaging Solutions portfolio: include: Beverage Industrial Packaging Food Service • In‐house design • Custom Craft Beer • Corrugated for Tray Formers • Carry Out Containers Packaging & Case Erecto
Slide 5: Alignment with Orora's Value Creation strategy
Alignment with Orora’s Value Creation strategy Pollock is the largest M&A transaction for OPS 5
Slide 6: Alignment with Orora's growth strategy in packaging solutions
Alignment with Orora’s growth strategy in packaging solutions The acquisition of Pollock aligns with Orora’s four key strategic M&A pillars FOOTPRINT CUSTOMERS CAPABILITY TALENT • Increases exposure to • Serves long term blue • Strong brand equity • Experienced, stable and attractive Texas market, c
Slide 7: Synergy opportunities
Synergy opportunities Significant synergies are available over the first 2 – 3 years totalling approximately US$6m p.a. Cost synergies • Operating cost reductions 1 • Footprint consolidation • Procurement 1 1 • Working capital 1 management 6 • Administration efficiency Sales synergies • New corporat
Slide 8: Key financial metrics
Key financial metrics • Purchase Price ‐ up to US$80.5m • Upfront payment of US$75.5m The Orora Way is • Holdback of US$5.0m designed to unite team • Balance progressively payable at 6, 9 and 12 month milestones members and embed a • Earn‐out of up to US$2m, payable approximately 12 months after com
Slide 9: Integration
Integration Strong integration plan The Orora Way is • Senior Orora Manager will relocate to Dallas for at least first 12 months of integration designed to unite team • Business will be branded Pollock Orora members and embed a • Business will be integrated into OPS with Pollock CEO to report to OPS
Slide 10: Slide 10